Policy 4-4 VISA PURCHASING CARD POLICY

DISTRIBUTION:    All Departments/All Cardholders

SUBJECT:    Visa Purchasing Card Policy

DATE:        February 16, 2009

PURPOSE:    To implement a policy for a purchasing card program and improve the convenience of making purchases for authorized emergency/unexpected items, online items, and out-of-town travel.

BACKGROUND:    The City of Lawton currently makes several authorized purchases using credit cards issued to the City.  Visa Purchasing Cards will take the place of the current credit cards and allow for a tailored program more specific for City use.  This system allows the City more control on expenditures while saving the City money on fees and charges that traditional credit cards impede on a cardholder.  The purchasing card program allows more cards issued without additional cost to the City than what was possible with traditional credit cards.

POLICY:

Overview

Visa Purchasing Cards are issued in lieu of credit cards.  These Purchasing Cards are to be treated like credit cards and kept in a secure manner.  To assure the effectiveness of the program, all cardholders must follow this policy and its procedures.  Every reasonable effort must be made to ensure that funds are used responsibly and in a manner consistent with the City of Lawton purchasing and Payment Procedures found in Administrative Policy 4-2, Travel Policies found in Council Policy 1-1, and all applicable laws and ethical practices.

Failure to use the purchasing card in accordance with applicable policies and procedures may result in suspension of the card and appropriate disciplinary actions, up to and including, termination and/or criminal action.  Some violations may include, but are not limited to:

    *Making purchases of items for personal use.
    *Making cash advances or receiving cash refunds for returned merchandise.
    *Failing to return the Purchasing Card when cardholder is re-assigned, terminated, resigns, or         upon request.

Purchasing Cards are the sole responsibility of the individual named on the card.  The cardholder should recognize the importance of protecting the account number of the card.  The cardholder should maintain possession of the Purchasing Card at all times.

In certain circumstances, it may be necessary to lend the card to another user.  Remember that as the cardholder you are responsible for all charges on the card except in the case that the cardholders account number reported as a lost or stolen card.  If it is determined that an additional car is beneficial for your department/division, a new user may be added as part of your group upon authorization of the Supervisor and Department Director, and the Program Administrator.  Submit requests for additional users by forwarding the attached Exhibit #1 to the Purchasing Card Program Administrator.


Credit Limit

The Program Administrator will assign credit limits, number of transactions limit, and point of purchase limits based on needs of the cardholder.  If a cardholder attempts to purchase over their limit or at an unauthorized point of purchase (e.g., jewelry store) the purchase will be blocked.

Credit Limits on cards may be changed either temporarily for a special purpose or permanently with approval from the Program Administrator.  Submit requests for credit line changes by forwarding the attached Exhibit #5 to the Purchasing Card Program Administrator.  For emergency on-the-spot changes please call 580-581-3328.

Purchasing Groups

The Visa Purchasing Card has restrictions based on the cardholders needs.  Listed below are examples of some of the restrictions.

Group #1 Pump Fuel
    Card may be used only at automated (pay-at-the-pump) fuel pumps

Group #2 Fuel Only
    Card may be used only at automated fuel pumps and stores that sell fuel.

Group #3 Business
    Card may be used only at hotels, car rentals, airlines, trains, bus lines, subways, restaurants, automated fuel pumps, gas stations, tollbooths, turnpikes, parking lots & garages and auto repair and services.

Group #4 Hotels
    Card may be used only at hotels, motels and lodges.

Group #5 Auto Parts
    Card may be used only at automotive parts and accessory stores.

Group #6 Auto Expense
    Card may be used only at new & used car and truck dealers, fuel stations, automated fuel pumps, tire sales & repair stores, wrecking & salvage yards, auto body repair shops, carwashes and towing services.

Multiple groups may be assigned to a cardholder based on criteria that deems it necessary. Submit requests for changes by forwarding the attached Exhibit #5 to the Purchasing Card Program Administrator.

Sales Tax

Exercise caution when making purchase in the city limits of Lawton.  Choose purchase points that honor the Sales Tax Exemption Status of the City of Lawton.  If the vendor will not honor the Sales Tax Exemption Status then do not purchase from that vendor.  The City sales tax exemption number is provided when the card is issued.  All local sales tax applied to the cardholder’s statement will be the responsibility of the cardholder.  The City of Lawton will not pay for sales tax incurred inside the Lawton city limits.  Sales Tax outside the Lawton city limits should be avoided if possible.  If it is not possible then the sales tax incurred outside of the Lawton city limits will be paid upon receipt of an authorized Purchase Order.

Cancelled Purchases

In no case should a purchaser accept cash, or a voucher, or a credit for future purchases.  A return product or cancelled service must result in a credit applied directly to the Purchasing Card.

Disputed Charges

It is the cardholder’s responsibility to recognize erroneous charges, charges for goods and services that were never received or received defective, or a credit no processed correctly. Disputes over charges should be resolved promptly between the cardholder and the vendor.  If a resolution is not reached, the cardholder must contact the issuer of the Purchasing Cards at 1-800-356-8085.  Forward a completed Cardholder Statement of Disputed Item(s), Exhibit #4, to the Program Coordinator.  Failure to dispute charges will result in a presumption that the charge is correct and will be deducted from the cardholders budgeted funds.

Lost/Stolen Cards

Report a lost or stolen card immediately to the following:

1-800-356-8085 Visa Lost or Stolen Card
580-581-3328 Program Coordinator

After contacting the above numbers, complete a Purchasing Card Lost/Stolen Report, Exhibit #3, and forward it to the Purchasing Card Program Coordinator.

Attached Exhibit #1 must be completed in order to request a replacement card.

Statements/Charges

All cardholders are able to access their detailed usage online.  Cardholder must self-register the account once the card is received.  Although the card can be used without registering online, it is valuable to do this so that monitoring all charges, payments, and balance in real-time is possible. The web site address is provided when the card is issued.

Requisition/Payment Process

Following Purchasing and Payment Procedures found in Administrative Policy 4-2 for all purchases made on the Purchasing Card.

Using the Purchasing Card is in no way a substitute for proper purchasing procedures

In all cases, a PO should be obtained prior to making a purchase on the purchasing card.  It is understood that obtaining a PO prior to making a purchase with the Purchasing Card may not be feasible.  If in the rare occasion this is not possible, obtain a requisition and PO as soon as it is. Waiting to obtain a Requisition and PO for purchases after the statement is received may result in a late payment, which, in turn may result in suspension of the Purchasing Card.

It is the responsibility of the cardholder to review for accuracy and reconcile monthly card activity statements.  After reconciling the monthly statement receive PO(s) in the GEMS system and forward the statement and all receipts by the second Wednesday of every month to financial services for payment.

Failing to submit by the second Wednesday of every month all supportive documentation for charges and the statement to Financial Services may result in suspension of the card.

Cancellation of Purchasing Card

If an employee assigned a Purchasing Card has a change in status, is terminated or resigns, return the Purchasing Card to the immediate supervisor.  A Purchasing Card Return Form, Exhibit 6, must be completed and forwarded with the card to the Purchasing Card Coordinator.

REFERENCES:    Arvest Visa Purchasing Card Agreement, Administrative Policy 4-2, Council Policy 1-1

RESCISSION:        No Rescissions, this is a new policy

RESPONSIBLE
DEPARTMENT:    Finance Administration


____________________________________                ____February 16, 2009_______
Larry Mitchell                                Date
City Manager
REQUEST FOR PURCHASING CARD
EXHIBIT #1

TO:    Purchasing Card Program Administrator

FROM:    ______________________________________________________________________________
              (Name)                            (Division/Department)

SUBJECT:    Request for Purchasing Card

I request the following employee be issued a City of Lawton Purchasing Card for the purpose of making small-dollar purchased in the normal course of authorized City business.

Full Name of Employee (print):___________________________________________________________

Employee Signature:____________________________________________________________________

Employee Title:________________________________________________________________________

Please indicate the intended purpose of the Purchasing Card and any requirements or restrictions required.  (This information is for reference only.  Final limits and restrictions are at the discretion of the Purchasing Card Program Administrator.)

_____________________________________________________________________________________

_____________________________________________________________________________________

_____________________________________________________________________________________

Types of Vendors:______________________________________________________________________

           ______________________________________________________________________
           (i.e. office supplies, lumber)
Daily Transaction $ Limit:_______________________# of Transactions Daily Limit________________


REQUESTED BY:    _________________________________________________________________
            Signature of Supervisor

APPROVED BY:    _________________________________________________________________
            Signature of Department Director

APPROVED BY:    _________________________________________________________________
            Signature of Purchasing Card Program
            Administrator

PURCHASING CARD CARDHOLDER AGREEMENT
EXHIBIT #2

I, ______________________________________ hereby agree to comply with the Purchasing Card policy and procedures and the following terms and condition regarding my use of the card. As a cardholder, I have read and understand the City of Lawton Purchasing Card Policy and Procedures.

1.    I understand that I am being entrusted with a valuable too, the Purchasing Card.  I will be making     financial commitments on behalf of The City of Lawton.  I will obtain the best value for the City     by using the card wisely and with discretion.

2.    I agree to use this card for official approved purchases only.  I fully understand that misuse or     abuse of the card will result in revocation of the card and appropriate disciplinary action which     may include termination of my employment.

3.    Policy violations include, but are not limited to:

    Expenditures for personal purposes;

    Cash advances or refunds for returned merchandise;

    Failing to return the Purchasing Card when cardholder is re-assigned, terminated, resigns, or upon     request;

4.    I agree to return the card immediately upon request or upon termination of employment (including retirement and resignation).  Should I be transferred, qualify for extended leave or undergo an organizational change which causes my duties to no longer necessitate the use of the card, I agree to return it immediately and arrange for issuance of a new card as may be appropriate.

5.    If the card is lost or stolen, I agree to immediately notify Visa and the Purchasing Card Program Coordinator both verbally and in writing.  

I understand and agree that my use of the purchasing card is subject to the following specific purposes or restrictions:
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
To be filled out by the Purchasing Coordinator.

_________________________    _____________    _______________________________________
Employee Signature        Date            Division/Department

________________________    _____________        __________________    ___________________
Department Director        Date            Purchasing Card    Date
                            Program Administrator

Transaction Limit if Applicable:_____________________________Credit Limit:$__________________
To be filled out by the Purchasing Coordinator

Submit to Purchasing Card Program Administrator for Authorization

PURCHASING CARD LOT/STOLEN REPORT
EXHIBIT #3

To report a lost/stolen card dial 1-800-356-8085

TO:    Purchasing Card Program Coordinator

FROM:    ______________________________________________________________________________
    (Division/Department)

Card Number:_________________________________________________________________________

Full Name of Employee (print):___________________________________________________________

Employee Signature:____________________________________________________________________

Employee Title:________________________________________________________________________

Date of Loss:__________________________________________________________________________
        If you do not know the date it was lost then note the date you realized it was gone.

Date of Stolen:________________________________________________________________________
        If you do not know the date it was lost then note the date you realized it was gone.

Details:______________________________________________________________________________

    ______________________________________________________________________________

    ______________________________________________________________________________

    ______________________________________________________________________________

    ______________________________________________________________________________

    ______________________________________________________________________________

    ______________________________________________________________________________
    
__________________________        __________
Supervisor Signature            Date


__________________________        __________    _______________________________    ______
Department Director            Date        Purchasing Card Program Coordinator    Date

CARD HOLDER STATEMENT OF DISPUTED ITEM(S)
EXHIBIT #4

RE:_________________________________________________________________________________

Cardholder Name:_______________________________________Card Number:___________________

Merchant Name:_________________________________________Disputed Amount:$______________

I dispute the charge(s) described herein as follows: {Check Appropriate Box(es)}

I certify that the charge listed above was not made by me nor were the goods or services represented by the above transaction received by me or by a person authorized by me.  
I do not recognize the transaction as listed above.  Please inform me of merchandise name and description of merchandise purchased.  
Although I did engage in the above transaction, I dispute all or part of the charge in the amount of $______________  
I have contacted the merchant and requested a credit adjustment that I did not receive or was not satisfactory.  
I have been charged twice for the same transaction.  Posting dates: __________ and _________.  
A credit slip was listed as a sale on my statement.  
The amount of the sales slip was increased from $____________ to $_____________.  Enclosed  is a copy of the credit memorandum.  
Non-Acceptance  
Other, please explain completely below  

I am disputing the charge because:_________________________________________________________

_____________________________________________________________________________________

_____________________________________________________________________________________

_____________________________________________________________________________________

Designated Cardholder Signature:______________________________

Phone:____________________________________________________

Date:_____________________________________________________


___________________________________    __________________
Purchasing Card Program Coordinator        Date

PURCHASING CARD CHANGE FORM
EXHIBIT #5

TO:    Purchasing Card Program Administrator

FROM:______________________________________________________________________________
    (Division/Department)

Card Number:_________________________________________________________________________

Full Name of Employee (print):___________________________________________________________

Employee Signature:____________________________________________________________________

    List Change Requests: (e.g. higher credit limit, more categories)

Requests:_____________________________________________________________________________

_____________________________________________________________________________________

_____________________________________________________________________________________

_____________________________________________________________________________________

Reason:______________________________________________________________________________

_____________________________________________________________________________________

_____________________________________________________________________________________

_____________________________________________________________________________________

REQUESTED BY:    _________________________________________________________________
            Signature of Supervisor

APPROVED BY:    _________________________________________________________________
            Signature of Department Director

APPROVED BY:    _________________________________________________________________
            Signature of Purchasing Card Program Administrator


Date Changed:_________________________________________________________________________

PURCHASING CARD RETURN FORM
EXHIBIT #6

TO:    Purchasing Card Program Coordinator

FROM:______________________________________________________________________________
    (Division/Department)

Card Number:_________________________________________________________________________

Full Name of Employee (print):___________________________________________________________

Employee Signature:____________________________________________________________________

Employee Title:________________________________________________________________________

Date Card Returned:____________________________________________________________________

Returned To:__________________________________________________________________________

Signature:____________________________________________________________________________

Reason:______________________________________________________________________________

_____________________________________________________________________________________

_____________________________________________________________________________________

_____________________________________________________________________________________



_______________________________________        __________________
Purchasing Card Program Coordinator            Date